Cash discount: A cash discount is the reduction in the amount that is to be paid by the credit customers. It is usually allowed by the seller to buyer or customer, in order to motivate the customer to pay within a specified period of time. A cash discount is often referred as sales discount. To prepare: The journal entry to record the sales on July 15, 2016 and collection on July 23, 2016.

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Equivalent Units of Production The following information concerns production in the Baking Department for August. All direct materials are placed in process at the beginning of production. ACCOUNT Work in Process-Baking Department ACCOUNT NO. Balance Balance Date Item Debit Credit Debit Credit August 1 Bal., 6,600 units, 2/5 completed 13,464 31 Direct materials, 118,800 units 201,960 215,424 31 Direct labor 31 Factory overhead 54,540 269,964 30,678 300,642 31 Goods finished, 120,300 units 289,116 11,526 31 Bal., ? units, 4/5 completed 11,526 a. Determine the number of units in work in process inventory at August 31. units b. Determine the equivalent units of production for direct materials and conversion costs in August. If an amount is zero, enter in "0". Baking Department Equivalent Units of Production for Direct Materials and Conversion Costs For August Line Item Description Whole Units Equivalent Units Equivalent Direct Materials Units Conversion Inventory in process, August 1…

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Chapter 7, Problem 7.6E

(1)

To determine

Cash discount:

A cash discount is the reduction in the amount that is to be paid by the credit customers. It is usually allowed by the seller to buyer or customer, in order to motivate the customer to pay within a specified period of time. A cash discount is often referred as sales discount.

To prepare: The journal entry to record the sales on July 15, 2016 and collection on July 23, 2016.

(2)

To determine

To prepare: The journal entry to record the sales on July 15, 206 and collection on August 15, 2016.

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Equivalent Units of Production The following information concerns production in the Baking Department for August. All direct materials are placed in process at the beginning of production. ACCOUNT Work in Process-Baking Department ACCOUNT NO. Balance Balance Date Item Debit Credit Debit Credit August 1 Bal., 6,600 units, 2/5 completed 13,464 31 Direct materials, 118,800 units 201,960 215,424 31 Direct labor 31 Factory overhead 54,540 269,964 30,678 300,642 31 Goods finished, 120,300 units 289,116 11,526 31 Bal., ? units, 4/5 completed 11,526 a. Determine the number of units in work in process inventory at August 31. units b. Determine the equivalent units of production for direct materials and conversion costs in August. If an amount is zero, enter in "0". Baking Department Equivalent Units of Production for Direct Materials and Conversion Costs For August Line Item Description Whole Units Equivalent Units Equivalent Direct Materials Units Conversion Inventory in process, August 1…

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